Snacks producter Utz Brands Inc. (NYSE: UTZ) is buying tortilla chips maker On The Border from Insignia Capital Group for $480 million to expand its presence in the snacks category.
The acquisition gives Utz a new growth channel and expands geographically in snacks, while it gives On the Border the opportunity to expand in more convience and grocery stores.
“In combination with our small but growing premium Tortiyahs brand, the integration of the On The Border brand will continue to improve Utz’s scale and product diversification, which are important success factors in salty snacks,” says Dylan Lissette, CEO of Utz. “This acquisition strengthens our competitive position, as well as our financial profile.”
Goldman Sachs, BofA Securities and Cozen O’Connor are advising Utz Brands. Harris Williams and Kirkland & Ellis LLP are advising the target.